An initiative led by:

Adaptation Solutions TaxonomyJuly 2020Authors: Chiara Trabacchi, Jay Koh, Serena Shi, Tara GueligEditors: Maria Margarita Cabrera

Made possible by:

Adaptation SME Accelerator Project

Disclaimer

This publication is for informational purposes only. The information contained in this publication has been obtained from sources that Lightsmith believes to be reliable, but no representation or warranty, express or implied, is made as to the accuracy, completeness, reliability or timeliness of any of the content or information contained herein. As such, the information is provided 'as-is,' 'with all faults' and 'as available.' The opinions and views expressed in this publication are those of authors, and are subject to change without notice, and the authors have no obligation to update the information contained in this publication. Further, none of the authors or organizations supporting this ASAP publication shall be held liable for any improper or incorrect use of the information described and/or contained herein and assumes no responsibility for anyone's use of the information. Under no circumstances shall the authors and supporting organizations, or any of its participants or agents, be liable for any direct, indirect, incidental special, exemplary or consequential damages (including, but not limited to: procurement of substitute good or services; loss of use, data or profits; or businessinterruption) related to the content and/or to the user's subsequent use of the information contained herein, however caused and on any theory of liability. User agrees to defend, indemnify, and hold harmless, the authors and ASAP’s supporting organizations’ participants and agents from and against all claims and expenses, including attorneys' fees, arising out of the use of information herein provided.

Copyright © 2020 Inter-American Development Bank. Used by permission. This work is licensed under a Creative Commons IGO Attribution-NonCommercial-NoDerivatives (CC-IGO BY-NC-ND 3.0 IGO) license (https://creativecommons.org/licenses/by-nc-nd/3.0/igo/legalcode) and may be reproduced with attribution to the IDB and for any non-commercial purpose. No derivative work is allowed.

Any dispute related to the use of the works of the IDB that cannot be settled amicably shall be submitted to arbitration pursuant to the UNCITRAL rules. The use of the IDB’s name for any purpose other than for attribution, and the use of IDB’s logo shall be subject to a separate written license agreement between the IDB and the user and is not authorized as part of this CC-IGO license.

Note that link provided above includes additional terms and conditions of the license.

The opinions expressed in this publication are those of the authors and do not necessarily reflect the views of the Inter-American Development Bank, its Board of Directors, or the countries they represent.

2

Authors and acknowledgments

+ ASAP is an initiative led by the Lightsmith Group, made possible by funding from the Global Environmental Facility (with Conservation International as the Implementing Agency), and the Inter-American Development Bank

+ The authors of the Adaptation Solutions Taxonomy (or “ASAP Taxonomy”) are Chiara Trabacchi, Jay Koh, Serena Shi and Tara Guelig

+ The authors would like to acknowledge the following professionals for their cooperation and valued contributions to the ASAP Taxonomy

Panel of Expert Peer Reviewers Affiliation

Emilie Mazzacurati Four Twenty Seven

John Firth; Virginie Fayolle Acclimatise

Anna Creed Climate Bonds Initiative

Stacy Swann Climate Finance Advisors

Barbara Buchner; Morgan Richmond Climate Policy Initiative

Giacomo Fedele Conservation International

Kirsten Halsnæs DTU

Craig Davies EBRD

Nancy Saich; Cinzia Losenno EIB

Aloke Barnwal; Jason Garth Spensley Global Environmental Facility

Alfred Hans Grünwaldt; Maria Margarita Cabrera; Maricarmen Esquivel Inter-American Development Bank

Vladimir Stenek International Finance Corporation (IFC)

Sara Lovisolo London Stock Exchange / Borsa Italiana

Ujala Qadir Independent (former CBI)

3Note: The contents of this publication do not necessarily reflect the views of the Expert Peer Reviewers or their organizations.

2. Adaptation Solutions Taxonomy’s objectives and methodology

3. Definition of “Adaptation SME” and eligibility criteria

4. A classification of Adaptation SME solutions

5. Measuring Adaptation SMEs’ contribution to adaptation

13

22

31

39

Table of Contents

6. Next steps 44

1. Introduction 5

Annex A. Definitions, principles and criteria 47

Annex B. Classification approaches 53

7. Annexes 46

4

1. Introduction

5

Adaptation SME Accelerator Project

Identifying “Adaptation SMEs” by developing a Taxonomy and mapping SMEs providing adaptation solutions

Integrating “Adaptation SMEs” by developing a network of “Adaptation SMEs” and related stakeholders

Incubating and accelerating “Adaptation SMEs” by enabling existing incubator / accelerator programs to provide them with bespoke strategic, technical and operational support

ASAP seeks to build the ecosystem of SMEs offering climate adaptation solutions in developing countries

+ The Adaptation SME Accelerator Program (ASAP) aims to enhance the availability and uptake of climate adaptation solutions by identifying, engaging and empowering SMEs providing such solutions in developing countries

+ ASAP’s three-pronged intervention strategy entails:

1

2

3

6

ASAP focuses on SMEs because of their potential role in supporting adaptation and their specific needs for growth

+ ASAP focuses on SMEs because they:

+ Have the potential to play an important role in providing solutions for climate adaptation

+ Play a major socio-economic role in developing countries, generating at least 45% of employment and as much as 33% of GDP in developing countries1

+ Face specific challenges and barriers to growth and a specific lack of capacity to scale, which call for bespoke interventions2

+ Lack access to risk capital, which is a key constraint to their growth and to the transfer and supply of adaptation solutions

1 International Finance Corporation (2010), Scaling-Up SME Access to Financial Services in the Developing World.2 Climate Policy Initiative (2018), Understanding and Increasing Finance for Climate Adaptation in Developing Countries. Image Source: https://www.worldbank.org/en/topic/smefinance

East Asia & the Pacific

South Asia

Sub-Saharan Africa

Latin America & Caribbean

Middle East & North Africa

Europe & Central Asia

7

+ Enhance a user’s knowledge and understanding about the context- and location-specific risks and impacts of climate change and/or climate variability, including related determinants (exposure and vulnerability), to support decision-making and enable preparedness and early climate change action1

+ Any type of climate data product, information, software and other tools that enable the identification, evaluation and/or monitoring of physical climate risks and related impacts (opportunities)

+ Climate and weather modeling for preventive planning and climate advisory services for risk assessment

ASAP targets SMEs providing climate adaptation intelligence, products and services

Climate Adaptation Products and ServicesClimate Adaptation Intelligence

+ Enhance a user’s ability to adapt to and/or build resilience to climate variability and change

+ Any product, equipment, technology or service that help to manage – avoid, mitigate and/or transfer – physical climate risks and related impacts, and adapt to climate change

+ Drip irrigation, an energy technology helping to enhance the reliability and security of electricity supply or parametric and weather-index-linked insurance

DES

CRI

PTIO

NG

OA

LEX

AM

PLES

1 Adapted from the definition of Climate Services provided by IPCC (2018). 8

For IDENTIFYING and ASSESSINGphysical climate risks

For ADDRESSING physical climate risks

ASAP focuses on regions where climate adaptation is a priority

+ ASAP targets SMEs offering climate adaptation solutions in developing countries across Latin America and the Caribbean, Africa, and Asia

+ Adaptation is a key development priority for many developing countries in these regions, evidenced by significant portion of NDCs submitted that include a section on climate adaptation ─ 75% of the total. Agriculture, water and health are highlighted as key priority sectors.

Country NDCWith adaptation content

Without adaptation content

No NDC submitted

Source: https://www.adaptationcommunity.net/nap-ndc/tool-assessing-adaptation-ndcs-taan/taan/. Note: See Section 2 and 3 for details on eligibility. 9

ASAP seeks to enhance the supply and uptake of climate adaptation solutions most needed in developing countries

+ Water storage and harvesting, and water monitoring and modelling are top priority climate adaptation solutions sought by developing countries to address climate-related risks in the water sector

+ Drip irrigation systems are at the top of the list of solutions for climate adaptation in the agricultural sector

Agriculture Sector Solutions Priorities

Water Sector Solutions Priorities

1

1

2

2

2

4

4

8

9

14

Water saving technologies

River protection

Drip irrigation

Desalination of saltwater

Resilient infrastructure

Organisational structure and capacity

Wastewater treatment and recycling

Water management

Monitoring and modelling

Water storage and harvesting

# of

tim

es a

tec

hnol

ogy

has

bee

n p

riorit

ized

1222

344

55

88

11

Food conservationFinance mechanism

Conservation agricultureWaste recycling

Livestock managementClimate monitoring and forecasting

Soil managementInfrastructure and technology

Farming systems and crop managementWater catchment and harvesting

Drip irrigationCrop diversification and new varieties

# of

tim

es a

tec

hnol

ogy

has

bee

n p

riorit

ized

Source: UNEP DTU Partnership and UNFCCC (2018). The Study provides evidence from 21 countries’ climate technology priorities, identified in Technology Needs Assessments & Technology Action Plans prepared between 2014-18. 10

ASAP targets the key barriers to the supply and uptake of climate adaptation solutions

Institutional, regulatory & policy failures

+ Missing or deficient policy/regulatory frameworks including e.g., mispricing of natural resources and distortive subsidies, inadequate support to SME ecosystems, inadequate market signals

+ Inadequate awareness/understanding of the risks/opportunities of climate change

+ Inadequate availability of decision-useful information, data and tools to integrate short, medium and longer-term climate change considerations into site-specific business decision-making

+ Inadequate capacity, knowledge and “know-how”

Knowledge & technical capacity barriers

+ Unknown or uncertain payback / benefits

+ Inadequate access to finance

+ Risk aversion

Technology barriers and challenges

Market failures & financial barriers

+ Inadequate track record

+ Mismatch between the available climate solutions and the unexpressed needs of users

+ Gaps in technology maturity, transfer, diffusion, innovation including lack of appropriate technology to use climate services

+ Inadequate access to fit-for-purpose data / data standardization and scientific barriers e.g. computing capacities limits

Key barriers targeted by ASAP

Sources: UNEP (2018) Adaptation Gap Report; UNEP (2014), Adaptation Gap Report; Trabacchi and Mazza (2015), Emerging Solutions to Drive Private Investment in Climate Resilience , MARCO web site , EU-MACS (2017), Review and Analysis of Climate Service Market Conditions. 11

The ASAP initiative seeks to deliver specific project outcomes

I. Identification

+ Develop a taxonomy of adaptation companies and solutions

+ Map regional market sizes, segments, and drivers

+ Identify 300 adaptation SMEs and complete 6-12 investment case studies across regions

II. Integration

+ Call at least 3 regional adaptation SME convenings

+ Establish community & on-line platform of adaptation SMEs

+ Share best practices, engage cross region and with governments

III. Incubation and

Acceleration

+ Develop climate adaptation-specific curriculum and “toolkits” for existing regional incubator/accelerator programs

+ Integrate adaptation SMEs into at least 5 of these incubator/accelerator programs to enhance their capabilities

+ Support engagement of SMEs with accelerators

12

2. Adaptation Solutions Taxonomy’s Objectives and Methodology

13

Adaptation SME Accelerator Project

A Taxonomy for ASAP is a key tool for identifying and engaging with “Adaptation SMEs”

+ The ASAP Adaptation Solutions Taxonomy is a tool developed with the aim of

+ Establishing a structured approach for transparently determining whether an SME qualifies as “Adaptation SME” based on the type(s) of technologies, products and services offered

+ Identifying areas in which SMEs may require targeted support during the engagement, incubation/acceleration phases of ASAP to avoid maladaptation and adopt best environmental and social risk management practices

+ Creating a flexible and inclusive framework that can be applied beyond the ASAP initiative to any company, regardless of size/scale or geography

14

1

2

3

The ASAP Taxonomy is designed to be a dynamic, flexible and inclusive tool

+ Four main elements compose the proposed Adaptation Solutions Taxonomy, namely: (i) a definition of “Adaptation SME”, (ii) eligibility criteria, (iii) a classification of “Adaptation SMEs”, and (iv) a results framework to measure, monitor and report on climate adaptation-related outcomes

+ The proposed Taxonomy is intended to be:

+ A dynamic and flexible tool, evolving over time along with experience, expertise, market dynamics and changing adaptation needs

+ Inclusive, to encompass SMEs that do not self-identify their technologies, products and services as adaptation solutions. This is because SMEs often do not label their solutions as “adaptation” / “climate resilience”-related and because what constitutes adaptation today in a given context can evolve

+ Applicable to any sector in recognition that Adaptation SMEs’ solutions can be suited to multiple sectors and that climate change will affect all sectors of an economy, and all sectors must adapt to climate impacts

+ Given the location- and context-specific nature of climate adaptation, the Taxonomy does not provide a stand-alone list of technologies, products and services that could be viewed as contributing to adaptation in all circumstances. Rather, it seeks to offer a framework to identify eligible companies based on the type(s) of technologies, products and services they provide. The framework, however, does recognize and build on existing adaptation-relevant taxonomies, some of which provide clear examples of adaptation solutions

15

The Taxonomy builds on existing standards and frameworks to support international harmonization and broad adoption

+ The proposed Taxonomy builds on existing definitions, taxonomies and approaches1 in pursuit of international harmonization, in particular:

+ EU Taxonomy for sustainable activities

+ Climate Bonds Initiatives (CBI)’s Climate Resilience Principles

+ European Market for Climate Services (EU-MACS) project

+ Intergovernmental Panel on Climate Change (IPCC)

+ Joint MDB methodology for tracking climate change adaptation finance

+ Joint MDB IDFC Framework for Climate Resilience Metrics

+ Market Research for a Climate Services Observatory (MARCO) project

+ Task Force on Climate-related Financial Disclosures (TCFD)

+ UNFCCC Climate Technology Centre and Network (CTCN) Taxonomy

+ Beyond ASAP, the Taxonomy has been developed for use by a broader range of users, which includes:

Market participants (e.g., investors, lenders, end-users of SME’s solutions, incubators and

accelerators)

SMEs themselves Governments and other public-goods oriented

organizations1 See Annex for more detail. 16

The development of the Taxonomy required a multi-step approach

17

1 Desk-based review of existing definitions, taxonomies, frameworks and approaches

2 Desk-based review of sectors demanding/in need of adaptation solutions, and of existing segmentations of climate adaptation solutions

3 Desk-based review of existing frameworks, principles and methodologies for measuring adaptation-related outcomes

4 Development of proposed Taxonomy for “Adaptation SMEs”

5 Peer review and fine-tuning

Key definitions underlying the Taxonomy (1/4)

Term Definition Source

Adaptation An economic activity shall be considered to contribute substantially to climate change adaptation where that: a) Economic activity includes adaptation solutions that either substantially reduce the risk of

adverse impact or substantially reduces the adverse impact of the current and expected future climate on that economic activity itself without increasing the risk of an adverse impact on other people, nature and assets; or where

b) Economic activity provides adaptation solutions that […] contribute substantially to preventing or reducing the risk of adverse impact or substantially reduces the adverse impact of the current and expected future climate on other people, nature or assets, without increasing the risk of an adverse impact on other people, nature and assets.

EU Technical Expert Group on Sustainable Finance (2020), Taxonomy Report: Technical Annex(2020)1

Adaptation solutions2

Technologies, products, or services that can help the identification, assessment, management/transfer and/or monitoring of physical climate risks and their impacts+ Climate information, data products, software and other tools that enhance users’ knowledge

and understanding about the risks/impacts of climate change and/or climate variability to support decision-making and enable preparedness and early climate change action.3

+ Products and services: i.e., any equipment, technology or service needed to prevent, mitigate or transfer physical climate risks and adapt to climate change

Adapted fromCTCN;GARI (2016)IPCC (2018)UNFCCC (2014);

Climate Resilience

Climate resilience is the strengthening of a system to withstand climate-related shocks or stressors. […] Climate resilience is the capacity of a system to cope with, or recover from, those effects, while retaining the essential components of the original system.

Joint-MDB/IDFC (2019)

Resilience The capacity of social, economic and environmental systems to cope with a hazardous event or trend or disturbance, responding or reorganizing in ways that maintain their essential function, identity and structure while also maintaining the capacity for adaptation, learning and transformation

IPCC (2018)

1 The definition outlined in the EU Taxonomy is broadly consistent with that provided by the IPCC i.e., “In human systems, the process of adjustment to actual or expected climate and its effects, in order to moderate harm or exploit beneficial opportunities. In natural systems, the process of adjustment to actual climate and its effects; human intervention may facilitate adjustment to expected climate and its effects (IPCC (2018 - Annex I: Glossary). 2 In the EU Taxonomy, adaptation solutions refers to “the set of all possible measures, actions, adjustments, changes, applications, products, services, etc. that contribute to adapt to a changing climate”.3 Adapted from the definition of Climate Services provided by IPCC (2018).

18

Key definitions underlying the Taxonomy (2/4)

Term Definition Source

Exposure The presence of people; livelihoods; species or ecosystems; environmental functions, services, and resources; infrastructure; or economic, social, or cultural assets in places and settings that could be adversely affected.

IPCC (2018)

Hazard The potential occurrence of a natural or human-induced physical event or trend that may cause loss of life, injury, or other health impacts, as well as damage and loss to property, infrastructure, livelihoods, service provision, ecosystems and environmental resources.

IPCC (2018)

Impact The consequences of realized risks on natural and human systems, where risks result from the interactions of climate-related hazards, exposure, and vulnerability.

IPCC (2018)

Physical Risks Physical risks from climate change encompass both:+ Acute risks: i.e., those that are event-driven, arising from extreme weather events such as

cyclones, hurricanes, or floods+ Chronic Risks: i.e., those arising from longer-term shifts in climate patterns (e.g., sustained

higher temperatures) that may cause sea level rise

TCFD (2017)

Risk The potential for adverse consequences where something of value is at stake and where the occurrence and degree of an outcome is uncertain. Risk results from the interaction of vulnerability (of the affected system), its exposure over time (to the hazard), as well as the (climate-related) hazard and the likelihood of its occurrence.

IPCC (2018)

Vulnerability The propensity or predisposition to be adversely affected. Vulnerability encompasses a variety of concepts and elements including sensitivity or susceptibility to harm and lack of capacity to cope and adapt.

IPCC (2018)

19

Resu

lts c

hain

Key definitions underlying the Taxonomy (3/4)Results chain

Term Definition

ActivitiesActions taken, work performed, and inputs mobilized by ASAP to deliver on its goals

Inputs Financial, human, and material resources invested by ASAP to deliver on its goals. These may vary in breadth and depth depending on e.g., Adaptation SMEs’ specific needs

Outputs The market-related changes resulting from ASAP’s effects on the supply/demand of climate adaptation solutions in developing countries

Outcomes The likely or achieved short-and medium-term effects resulting from the use of climate adaptation solutions, which may take the form of adjustments of physical, human, or environmental systems and associated socio-economic development benefits, resulting from the response to the context of climate vulnerability

Impacts The primary and secondary long-term effects of ASAP, directly or indirectly, intended or unintended, that may contribute to longer-term climate resilience, adaptive capacity, and/or reduced climate vulnerability

20Source: Adapted from Joint MDBs/IDFC (2019), A Framework and Principles for Climate Resilience Metrics in Financing Operations

Key definitions underlying the Taxonomy (4/4)

Term Definition Source

Developing countries IDA and IBRD’s borrowing countries World Bank Country and Lending

Groups

SMEs An enterprise qualifies as a small or medium enterprise if it meets two out of three following criteria – verified to the extent possible and on a best-efforts basis, based on the best publicly available information: + Small:

+ Employees: 10 - 49 + Total assets: US$100,000 - US$3 million + Annual sales: US$100,000 - US$3 million

+ Medium:+ Employees: 50 – 300+ Total assets: US$3 million – US$15 million+ Annual sales: US$3 million – US$15 million

IFC’s definitions

21

22

3. Definition of “Adaptation SME” and eligibility criteria

Adaptation SME Accelerator Project

A working definition of “Adaptation SME”

+ An “Adaptation SME” is a company providing technologies, products and/or services that:

1 According to the EU Taxonomy, “systemic adaptation” activities aim to “actively reduce vulnerability and build resilience of a wider system, or systems, such as a community, ecosystem, or city”. According to the Joint-MDBs/IDFC (2019), “system” refers to the “wider context e.g., livelihood, transport and logistics, supply chain, value chain, information and communication, market, ecology”.2 As per the EU Taxonomy, “material physical climate risk” refers to the risk of financial and/or non-financial losses occurring due to performance failures, performance delays or incomplete performance of an economic activity/assets resulting from climate-related hazards. Materiality is location- and context-specific.

Address systemic1 barriers to adaptation by strengthening users’ ability to understand and respond to physical climate risks and related impacts and/or capture related opportunities

Contribute to preventing or reducing material physical climate risk2 and/or the adverse associated impacts on assets, economic activities, people or nature

AND / OR

Examples:

+ Weather and climate analytics

+ Hydrological forecasting modelling

+ Remote sensing-based tools for physical climate risk exposure assessment

Examples:

+ Water-efficient irrigation systems

+ Water storage and harvesting

+ High precision laser land leveling to reduce runoff

+ Geosynthetic products

23

Eligibility screening criteria to identify eligible “Adaptation SMEs”

+ To qualify as Adaptation SME, an SME’s technology, product, or service offering must:

Enable a user to identify, evaluate, manage and/or monitor physical climate risks and impacts (opportunities), thereby contributing to prevent or reduce context-and location-specific risk of adverse impacts, or the adverse impacts, of the current and expected future climate on assets, economic activities, people or nature

Enable a user to address systemic barriers to adaptation by e.g. addressing information, capacity, technological or financial barriers to adaptation by others

Be offered in developing countries

The contribution to adaptation ─ adaptation-related outcomes ─ can be defined and qualitatively and/or quantitatively measured and monitored

AND / OR

AND

AND

The context- and location-specific relevance assessment must be grounded in robust evidence, e.g., existing analyses such as IPCC reports, countries’ NDCs, etc.

24

Application of the ASAP Adaptation Solutions Taxonomy approach

An SME qualifies as an Adaptation SME if:

Offering solutions in developing

countries

Enables a user to address systemic barriers to climate

adaptation

Contributes to preventing or reducing context- and

location-specific risk of adverse impacts, or the adverse

impacts of the current and expected future climate

+ Operates in compliance with relevant E&S standards and local regulation+ Commits to put in place actions to:– Increase its own resilience to climate change risks and impacts– Adopt best available knowledge to provide solutions that do not lead

to maladaptation (of the direct user or the system in which the user operates)

– Build the awareness and capacity of the target users of their solutions to avoid maladaptation

– Apply best environmental & social safeguards practices

ASAP maps SMEs offering solutions relevant with sectoral, regional, and/or nation-wide climate adaptation needs and efforts

Its contribution can be quantitatively and/or qualitatively measured

ASAP (incl. via convenings and incubators/accelerators) will support SMEs in meeting the criteria of the Taxonomy. This would encompass e.g., capacity building to support them in building the awareness and capacity of the users of their solutions and meet ESG management and impact measurement standards (via ESG and impact measurement toolkit).

Enga

gem

ent

stag

e

Scre

enin

g st

age

(map

ping

)

ASAP Activities

To “Do No Significant Harm” and generate long-term value

25

The ASAP Adaptation Solutions Taxonomy builds on the EU Taxonomy

+ The proposed definition and related screening criteria build on the ones of the EU Taxonomy for sustainable activities and have been informed by the definitions, frameworks and approaches adopted by Bi-Multilateral Development Banks, Climate Bonds Initiative’s Climate Resilience Principles, and the Global Adaptation and Resilience Investment (GARI) Working Group (see Annex A)

+ Under the EU Taxonomy, “Adaptation SMEs” fit under the “activities enabling adaptation of an economic activity” typology of activities substantially contributing to adaptation objectives

+ As per the EU Taxonomy, the eligibility screening criteria are qualitative in nature. An established methodology for defining quantitative screening criteria does not exist given the lack of measured baselines or accepted metrics for climate adaptation. Further, as noted in the EU Taxonomy, “quantitative screening criteria could exclude small-scale activities that may deliver significant climate-resilience benefits in specific contexts”

+ The ASAP Adaptation Solutions Taxonomy refrains from establishing quantitative eligibility criteria thresholds based on targeted SME’s adaptation-related revenue or spending. This is because: (i) the objective of ASAP is to foster and scale-up the provision and availability of adaptation solutions from the private sector, and (ii) data limitations, especially at the screening stage

+ ASAP seeks to enhance understanding and awareness of the ecosystem of SMEs providing climate adaptation solutions in developing countries

+ ASAP focuses on enhancing targeted SMEs’ climate adaptation-related existing business lines and new adaptation-related opportunities

+ Note: The EU Taxonomy similarly does not establish revenue or spending thresholds. Rather, it calls for the disclosure of Taxonomy-eligible “revenue and/or expenditure associated with the economic activity that meets the relevant screening criteria” e.g., revenue linked to developing early warning systems for flood risk

26

The ASAP Adaptation Solutions Taxonomy builds on the EU Taxonomy

EU Taxonomy: decision tree for determining substantial contribution to climate change adaptation

ASAP specifically focuses on Activities Enabling Adaptation

27Source: EU Technical Expert Group on Sustainable Finance (2020), Taxonomy Report: Technical Annex (page 22).

Climate-related impact drivers1

1 Note: List of hazards is non-exhaustive. © IPCC, 2014: Climate Change 2014: Impacts, Adaptation, and Vulnerability. Part A: Global and Sectoral Aspects. Contribution of Working Group II to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change [Field, C.B., et al..)]. Cambridge University Press, Cambridge, United Kingdom and New York, NY, USA, 1132 pp. Sources: GARI (2016), Bridging the Adaptation Gap; ADB (2014), Technologies to Support Climate Change Adaptation in Developing Asia; Zhu, X et al. (2011), Technologies for Climate Change Adaptation - Agriculture Sector; Christiansen et al. (2011),Technologies for Adaptation - Perspectives and Practical Experiences.

Taxonomy is designed to be inclusive given Adaptation SMEs’ solutions are wide-ranging – across physical risks and impacts and across multiple sectors

28

Sector Examples of projected climate change impacts

Examples of adaptation solutions

Climate Adaptation Intelligence Climate Adaptation Products and Services

Agriculture+ Reduced crop yields and quality resulting

from higher temperatures and/or less precipitation

+ Reduced crop yields in irrigated agriculture due to reduced availability of irrigation water

+ Crops losses due to extreme weather events

+ Climate monitoring and forecasting + Temperature regulation technologies

for livestock + Remote sensing-based drought

monitoring tool+ Crop data and analytics platform with

mapping interface

+ Drought tolerant crops + High precision laser land leveling

to reduce runoff+ Pressurized irrigation technologies

using sprinkler, drip, mini-sprinkler, or high-efficiency drip systems

+ Parametric insuranceCoastal zones

+ Damage to assets from more intense and frequent extreme weather events

+ Flooding due to sea level rise and storm surges

+ Reduced of domestic, commercial, or industrial water due to saltwater intrusion

+ Erosion due to rising sea level

+ Early warning systems for extreme coastal weather events

+ Satellite imagery for monitoring and impact assessment

+ Sea-level processing software

+ Geosynthetics (e.g., geotextiles and geomembranes)

+ Constructed wetlands and artificial reefs

Health + Changes in the geographic range, seasonality, and incidence of vector- and water-borne diseases

+ Reduced labor productivity due to heat stress+ Increased respiratory illness due to heat stress

+ Disease surveillance systems+ E-Health e.g. remote diagnostics,

health and disease surveillance systems for outbreak detection

+ Long-lasting insecticidal nets + Rapid diagnostic tests

Transport + Damage to road network / rail network / seaports due to extreme weather events

+ Interruption of transport networks due to extreme weather events

+ Flooding and inundation of transportation infrastructure due to rising sea levels

+ Intelligent transportation systems to e.g. monitor road conditions, address hazards in real time, moving traffic away from areas experiencing a natural disaster, point first responders to identify priority intervention areas

+ Extreme heat/cold resistant paving material

+ Active motion-dampening systems

Water supply and mngt.

+ Reduced surface-water availability due to changes in precipitations

+ Reduced surface water quality due to e.g., saltwater intrusion

+ Increased flooding due to extreme weather events

+ Water monitoring and modelling (e.g. water resource mapping)

+ Hydrological forecasting system

+ Water storage and harvesting+ Water saving technologies / water

loss reduction technologies e.g., smart water meters, pressure control equipment

Source: Adapted from ©MARCO Case Studies available on MARCO website: (i) Agriculture in France, (ii) Water and Sanitation in Catalonia; (iii) Real Estate in Copenhagen. Note: MARCO’s case studies refer to “Climate Services”.

Examples of applications of climate adaptation intelligence

AGRICULTURE | Wine industry+ Key climate risks: damages to yields and yield composition.

+ Climate adaptation intelligence use: (i) obtain guidance on how to adapt agronomic practices to increased frequency and severity of water deficits and heatwaves; (ii) understand potential pathogens’ invasion and associated economic impacts.

WATER AND SANITATION + Key climate risks: Reduction of aquifers recharge; change in water quality and in

contamination characteristics; changes in the physical characteristics of water.+ Climate adaptation intelligence use: providing access to decision-useful information on

climate events to support adaptation planning decision-making; providing data, models and scenarios for operational and strategic management of the water system.

REAL ESTATE+ Key climate risks: Damage to physical structures; disruption of business operations; and

health and safety issues for occupants and construction site workers, flooding and sewage overflow.

+ Climate adaptation intelligence use: urban zoning and planning; climate risk screening during feasibility stage, performance test of new climate adaptation solutions, decision support.

29

Examples of applications of climate adaptation products and services

AGRICULTURE | rainfed crops+ Key climate risks: lower crop yields and quality due to changing precipitation patterns

resulting in floods or extended droughts.

+ Climate adaptation product: drip irrigation à enables the supply of water in frequent small amounts to the exact place where crop plants can utilize it most efficiently. It can help to increase crop yields while conserving agri-related inputs, water resources, as well as result in labor and energy savings.

WATER AND SANITATION + Key climate risks: reduced availability of water for domestic, commercial or industrial use

due to changes in precipitation, increased evaporation, increased glacier melt.

+ Climate adaptation product: water metering à helps reduce water consumption, detect and pinpoint leakages in the system and provide information to utilities about consumer behavior that can be used in water conservation campaigns.

COASTAL ZONES+ Key climate risks: damages to the built environment and/or disruptions to transportation

networks due to coastal flooding and erosion caused by sea level rise or more intense and frequent extreme weather events.

+ Climate adaptation product: geosynthetic products (geotextiles, geogrids, geonets, geomembranes, geofoam, geocells, and geocomposites) à help to control floods, manage erosion, and provide protection against damage from waves or currents.

30

Source: Adapted from CGIAR (2017), Can drip irrigation help farmers to adapt to climate change and increase their incomes?; CTCN (2017), Climate change adaptation technologies for water: a practitioner’s guide to adaptation technologies for increased water sector resilience; ADB (2014), Technologies to Support Climate Change Adaptation in Developing Asia;

31

4. A classification ofAdaptation SME solutions

Adaptation SME Accelerator Project

A classification of Adaptation SME solutions to drive supply and demand

+ The classification proposed herein aims to communicate the need and opportunity for climate adaptation solutions to both Adaptation SMEs and the users of their solutions. To this end, the classification considered the following dimensions:

+ It builds on the classifications adopted by existing taxonomies, frameworks, and methodologies (see Annex B), and may be refined as a result of further road-testing.

32

Types of adaptation solutions provided by Adaptation SMEs

1

The industry sector to which the solutions can be applied

2

Types of physical climate-related hazard(s) and risks targeted by Adaptation SME solutions

3

The geographic context of application (region/country) of solutions

4

+ The proposed classification intends to inform the development of an online database aimed at facilitating users’ identification and uptake of Adaptation SME solutions

Adaptation SME name

Targeted industry sector

Targeted physical climate hazard/risk

Geographic scope

The proposed classification can inform the development of a user-centric online database of Adaptation SMEs

Key dimensions for the online database User questions to address

Climate Adaptation Intelligence

Climate Adaptation Products & Services

Type of adaptation solution

33

Who provides adaptation solutions?

What does it provide?

and/or

To which economic activities can the adaptation solutions be used/applied?

What type of physical climate risks can the solutions help address?

Where are the solutions available?

Do the solutions help to assess and/or addressphysical climate risks?

Classification of Adaptation SME solutionsBy type of activity performed

+ ASAP proposes a preliminary categorization by type of Adaptation SME solution to inform the demand for such solutions

+ Trade-offs exist in the breadth and granularity of the categorization of adaptation solutions by typology. ASAP opts for macro-categories that are detailed and clear enough to communicate the type of activity performed/output offered by an Adaptation SME’s solution to target end-users and/or other relevant market participants (e.g., investors)

+ The categorization proposed builds on the approaches adopted by the Climate Knowledge Hub, the UN Climate Technology Centre & Network (2017); EU-MACS (2017) and MARCO project (2018).

By Adaptation solution type1

Climate Adaptation Intelligence

Advisory services for e.g. climate risk exposure and vulnerability identification & assessment

Data management and operations (e.g. provision of calibrated/validated data sets; collection and provision of raw data for global weather, and climate change applications)

Decision-support tools (e.g. early warning systems, software performing cost/benefit analysis of adaptation solutions)

Physical climate risk identification and impact assessment (e.g. spatial hazard and vulnerability mapping analysis, disaster risk assessment tools, systematic monitoring & remote sensing climate impact analysis)

Climate Adaptation Products and Services

Physical climate risk management (incl. e.g., water efficient irrigation technology, rainwater harvesting; crop storage, geosynthetics; etc.)

Physical climate risk transfer (e.g. parametric insurance)

34

1

1 Source: Adapted from Climate Knowledge Hub, EU-MACS (2017) and MARCO project (2018); IPCC AR5 (2014); Ernst C and Blaha K. (2015)

+ The ASAP Adaptation Solutions Taxonomy classifies Adaptation SME solutions according to the European statistical classification of economic activities known as Nomenclature of Economic Activities (NACE)1 in order to:

+ Align with the EU Taxonomy+ Enable broader adoption of the Taxonomy,

beyond the ASAP initiative+ The Panel of Expert Peer Reviewers suggested

aligning the Taxonomy with NACE over other sectoral classification systems considered (e.g., those used by UNFCCC’s Climate Technology Centre & Network, one proposed by the MARCO project to classify Climate Services based on the sectors in which they are used (see Annex for more detail on these systems))

+ The relevance of Adaptation SME solutions across sectors will be dependent on location-and context-specific circumstances. The EU Taxonomy, for instance, prioritizes the following sectors given their relative level of vulnerability to climate change & socio-economic relevance: Agriculture, forestry and fishing; Information & Communication; Financial & Insurance Activities; Water Supply, Sewerage, Waste Management & Remediation Activities2

1 NACE Rev. 2 corresponds to ISIC Rev. 4 - International Standard Industrial Classification of All Economic Activities. 2 For more details refer to the EU Taxonomy (2020) page 393.Sources: https://ec.europa.eu/Eurostat. 35

Classification of Adaptation SME solutionsBy targeted sector

2

Sector

+ A Agriculture; forestry and fishing

+ B Mining and quarrying

+ C Manufacturing

+ D Electricity; gas, steam & air conditioning supply

+ E Water supply; sewerage, waste management and remediation activities

+ F Construction

+ G Wholesale and retail trade; repair of motor vehicles and motorcycles

+ H Transportation and storage

+ I Accommodation and food service activities

+ J Information and communication

+ K Financial and insurance activities

+ L Real estate activities

+ M Professional, scientific and technical activities

+ N Administrative and support service activities

+ O Public administration and defense; compulsory social security

+ P Education

+ Q Human health and social work activities

+ R Arts, entertainment and recreation

+ S Other service activities

+ T Activities of households as employers; undifferentiated goods- and services-producing activities of households for own use

+ U Activities of extraterritorial organizations and bodies

+ ASAP proposes a classification by climate-related hazards and related impacts to (a) inform the supply of / demand for climate adaptation solutions; and (b) support climate-related financial disclosures aligned with TCFD which recommends disclosure of the types of climate risks to which an organization may be exposed and, where material, the actual and potential impacts of climate-related risks and opportunities

+ Classification seeks to align with the EU Taxonomy classification of climate-related hazards while adopting the IPCC’s distinction between climate-related hazards and risks on physical, biological and human systems. It also seeks to highlight those physical risk drivers potentially leading to economic costs and financial losses.

+ While aligning with the EU Taxonomy classification by major hazard group, authors recognize that risks to physical, biological and human systems can be driven by a combination of elements. For instance, the increased likelihood and severity of wildfire risks is determined by combination of high temperatures, low humidity, low rainfall and often high winds (see here).

36

Classification of Adaptation SME solutionsBy targeted climate hazard and related risks

3

1 Non-exhaustive. Key differences from EU Taxonomy classification system: Removed “subsidence” and hydrological variability. Added ecosystem & biodiversity loss, glacial retreat, changes in ice and snow cover. 2 Indicative, non-exhaustive set of climate-related risks and impacts identified in IPCC (2014), Climate Change 2014: Synthesis Report. See Annex for Figure 2.4 of the 2014 IPCC report for key climate-related risks by region. Sources: Adapted from IPCC (2013), Climate Change 2013, The Physical Science Basis. Contribution of Working Group I to the Fifth Assessment Report of the IPCC; IPCC (2014), Climate Change 2014: Impacts, Adaptation, and Vulnerability. Part A: Global and Sectoral Aspects. Contribution of Working Group II to the Fifth Assessment Report of the IPCC; EU TEG on Sustainable Finance (2020); NGFS (2019), A Call for Action. Climate Change as a Source of Financial Risk.

Key climate-related hazards1

Key risks on physical and biological systems1

+ Temperature variability*+ Changing temperature

(air, freshwater, marine water)*

+ Heat stress*+ Heat wave**+ Cold wave/frost**+ Wildfires**

+ Changing wind patterns*+ Cyclone, hurricane,

typhoon**+ Storm**+ Tornado**

+ Changing precipitation patterns and types (rain, hail, snow/ice)*

+ Precipitation variability*+ Heavy precipitation**

+ Ocean acidification*+ Saline intrusion*+ Sea level rise*+ Water stress*+ Drought**+ Flood**+ Glacial lake outburst**

+ Glacial retreat, changes in ice, snow cover, permafrost thawing*

+ Coastal erosion*+ Soil degradation & erosion*+ Solifluction*+ Ecosystem & biodiversity loss*+ Avalanche**+ Landslide**

Tem

pera

ture

-rel

ated

Win

d-

rela

ted

Solid

-Mas

s Re

late

dW

ater

-Rel

ated

Map

pin

g t

o EU

Tax

onom

y C

lass

ifica

tion

of C

limat

e-re

late

d H

azar

ds

Key risks on human and managed systems2

+ Reduced agricultural productivity and food security

+ Damages to physical infrastructure, property, and critical services

+ Reduction in water availability, quality and security

+ Business disruptions

+ Spread of pests, and vector-borne and water-borne diseases

+ Impacts to human health, and loss of livelihoods

* Chronic ** Acute

1 ASAP is focused on SMEs delivering solutions in developing countries, but there may be instances where SMEs also serve customers in North America among other countries. Sources: World Bank Country and Lending Groups; http://datatopics.worldbank.org/sdgatlas/archive/2017/the-world-by-region.html.

+ Mapping climate adaptation solutions to geographical regions where the SME’s intelligence, products and/or services are delivered and used helps to contextualize the solutions within geographies shaped by different climate impacts and vulnerabilities

+ The ASAP Adaptation Solutions Taxonomy adopts the classification of the World Bank list of economies

Region Country examples

East Asia & Pacific+ Cambodia+ Indonesia+ …

Europe & Central Asia

+ Tajikistan+ Ukraine+ Turkey + …

Latin America & Caribbean

+ Argentina+ Brazil+ Colombia+ …

Middle East &

North Africa

+ Morocco+ Tunisia+ Israel + …

South Asia

+ India+ Bangladesh+ Sri Lanka+ …

North America1 + United States+ Canada

Sub-Saharan Africa

+ Ghana+ Kenya+ Nigeria+ …

37

Classification of Adaptation SME solutionsBy targeted geography

4

Case study: Example of a Taxonomy-aligned SME and related classification

Company offers a cloud-based, software analytics platform that combines data from in-field sensors and satellite imagery with data received directly from farmers via micro-surveys to provide more accurate weather data and monitoring of growing conditions which can support better, more adaptive decision-making on the field and more accurate yield projections. The company’s offering accomplishes the following: + Overcomes the shortcomings of satellite imagery, providing a more granular view of micro-climate effects that have

different impacts on agricultural production and outputs+ Can be used for a wide range of applications in agriculture, including agricultural insurance and lending, precision

agriculture, as a value-add service for selling agricultural inputs, farm management, and disaster response

Adaptation SME Eligibility Screening

38

AgTech Company Description

Application of Adaptation Solutions Taxonomy and Classifications

Type of adaptation solution

Climate Adaptation Intelligenceà Decision-support tool

Targeted industry sector

A. Agriculture, Forestry and Fishing0.1 Crop and animal production

Targeted physical climate hazard

+ Temperature-related+ Water-related

Geographic scope

SME based in South Asia offering its solutions in South Asia

Criteria Rationale

ü Enables a user to address systemic barriers to climate adaptation relevant for the context

Field data and more precise weather analytics provide information (e.g., soil moisture, live weather conditions) that can help farmers make better decisions in the face of increased weather volatility, drought risk, etc.

ü Solution is offered in developing countries

SME is based in South Asia and serves customers in South Asia

ü Adaptation-related outcomes can be defined and measured

Sample impact KPIs might include: hectares of farmland covered, # of farmers served; liters of water saved; $ of agricultural loans originated

Classification of Adaptation SME Solution

39

5. Measuring Adaptation SMEs’ contribution to climate adaptation

Adaptation SME Accelerator Project

1 It is worth noting that significant progress and contributions have been made to date on this matter. See e.g., Joint MDBs/IDFC (2019), A Framework and Principles for Climate Resilience Metrics in Financing Operations; EU Taxonomy for sustainable activities (2019); EBRD and GGCA (2018), Advancing TCFD guidance on physical climate risks and opportunities; EBRD (2018), Implementing the EBRD Green Economy Transition - Technical Guide for Consultants; TCFD (2017). Source: Joint MDBs/IDFC (2019), A Framework and Principles for Climate Resilience Metrics in Financing Operations.2 Spearman and MacGray (2011); Leiter and Pringle (2018); Leiter et al. (2019)

There is no one-size-fits-all set of metrics for measuring the contribution of a given solution to climate adaptation

OBJECTIVE

+ This section introduces preliminary considerations and an initial framework for evaluating the contribution of Adaptation SMEs to adaptation outcomes à The results framework and related indicators will be developed further in subsequent phases of ASAP

BACKGROUND

+ Valorizing physical climate risks and related impacts and the benefits associated with investments in adaptation solutions is critical to driving private investment in climate resilience solutions

+ At present, there is no one-size-fits-all set of metrics for measuring adaptation benefits. Accepted metrics have not yet been developed1 due to the complexity associated with evaluating physical climate risks and the outcomes of physical climate risk management interventions. Key issues include: + It is difficult to establish baselines and determine the causality between an intervention and

adaptation outcome(s) given the inherent uncertainties associated with climate change impacts and the long-time horizon that might span between a given intervention and its results.

+ What constitutes success following an adaptation intervention changes over space and time, as climate change impacts differ across sites, temporal and spatial scales, and affects a series of sectors.2

+ The great heterogeneity and diversity of potential physical climate-related risks and responses makes it challenging to define universal metrics. A context-specific approach is required.

40

Evaluating the contribution of Taxonomy-aligned SMEs to adaptation: key considerations

+ Evaluating the incremental contribution of Adaptation SMEs to climate adaptation outcomes requires the following considerations:

+ The distinctive contribution to adaptation that Climate Adaptation Intelligence vs. Climate Adaptation Products and Services can deliver along the results chain

+ The level of the results chain at which adaptation outcomes can manifest i.e., at an Adaptation SMEs’ client business level (organization-wide) and/or an asset(s) level

+ The contribution that tackling system barriers to adaptation can deliver to the wider system1 reached by an adaptation solution at different points in time

+ SMEs’ ability to enhance user awareness and capacity

+ Adaptation SMEs’ ability to measure and report on their incremental contribution to adaptation à A measurement and reporting approach for SMEs should seek to be practical, consistent, comparable and not overly burdensome

1 According to the EU Taxonomy, “systemic adaptation” activities aims to “actively reduce vulnerability and build resilience of a wider system, or systems, such as a community, ecosystem, or city”. According to the Joint-MDBs/IDFC (2019), “system” refers to the “wider context e.g., livelihood, transport and logistics, supply chain, value chain, information and communication, market, ecology”. 41

Adaptation SMEs

Adaptation SME Clients

Climate Adaptation Intelligence

Climate Adaptation Products and Services

Adaptation SME Clients

Physical climate risks / impacts identification and/or assessment

Physical climate risks / impacts management

The achievement of adaptation outcomes depends on if, and how,

a user of Climate Adaptation Intelligence solutions acts as a

result of the improved intelligence

The achievement of adaptation outcomes is

determined by a users’ use of Climate Adaptation Products and Services

Ad

aptation outcom

es

Enhanced resilience of client’s asset(s)

Enhanced resilience of a client’s business

Enhanced resilience of client’s asset(s)

Enhanced resilience of a client’s business

Adaptation SME contributions to adaptation along the results chain

42

IMPACTS

Paradigm shift in transitioning developing countries toward climate-resilient development pathways in alignment with the Paris Agreement

OUTCOMES

OUTPUTS

ACTIVITIES/INPUTS

Climate Adaptation Products and Services

Climate-related risks / impacts integrated in decision-making

Climate-related risks / impacts avoided, mitigated, or transferred

Improved understanding of physical climate risks and associated impacts

Reduced exposure and/or vulnerability to climate-related risks

Climate Adaptation Intelligence

Enhanced ability to adapt to climate

variability and change

Examples of possible metrics

Climate Adaptation Intelligence-related metrics

Climate Adaptation Products & Services-related metrics 2

+ The great heterogeneity and diversity of potential physical climate-related risks and responses, and the wide range of solutions potentially offered by Adaptation SMEs, call for the consideration of a wide set of metrics.1

+ Considering the level of the results chain at which adaptation outcomes can manifest (see slide 40), Adaptation SMEs’ incremental contribution to adaptation could be measured in terms of, for example, enhanced access to adaptation technologies (e.g. # of adaptation-relevant technologies sold), empowerment of women via enhanced access to adaptation technologies (# of Adaptation SMEs’ clients that are women), or technology performance (e.g. estimated improvements in agricultural productivity).

1 To enhance harmonization in impact reporting, the selection of indicators should take into due consideration existing impact reporting frameworks such as ICMA Group (2020), Harmonized Framework for Impact Reporting.2 Adapted from EBRD (2018), Implementing the EBRD Green Economy Transition - Technical Guide for Consultants. 43

↑ water availability Clients Households Provided New Access; Water (L) Generated; Water (L) Saved

↑ energy availability/reliability

Time/Value of Avoided Power Downtime; Renewable-based Backup Capacity Generation (MWH); Area (Absolute/%) of Transmission Line Undergrounded

↑ agricultural potential

Average agricultural yield; Area of Degraded; Land (hectares) Reforested / Restored

↓ weather-related disruption

Value of assets covered; # of customers served by the Company’s data and analytics

↓ weather-related damage

Gross Incurred Claim; Value of Extended Asset Life

$US total Climate Value at Risk estimated

No. of organizations / individuals supported in integrating climate-related considerations in decision-making

No. of organizations / individuals supported in disclosing climate-related financial risks

OUTCOMES

44

5. Next steps

Adaptation SME Accelerator Project

Key next steps

+ Road-test the Taxonomy to determine whether it requires further refinement

+ Advance the development of the results framework

+ Actively pursue dissemination, uptake and harmonization of the Taxonomy by engaging with relevant initiatives, networks and forums such as:

Initiatives + International Platform on Sustainable Finance

Networks

+ EuroClima

+ GARI – Global Adaptation and Resilience Investment Working Group*

+ Global Adaptation Network

+ Network of Financial Centers for Sustainability (FC4S)

+ Private-sector led Coalition for Climate Resilient Investment

+ USAID SERVIR program regional hubs

+ WBCSD

Events

+ Innovate4Climate

+ London Climate Action Week

+ New York Climate Action Summit

+ UN COP 26

45

* GARI could potentially support uptake of the taxonomy in the following ways: developing implementation guidance, launch a climate adaptation impact metrics working group, support testing of the taxonomy against member investment portfolios, etc.

46

ANNEXES

Adaptation SME Accelerator Project

47

ANNEX A.Definitions, principles, and criteria

Adaptation SME Accelerator Project

Definitions of adaptation, resilience, and climate resilience

Source Definition

Climate Bonds Initiative (2019)Climate Resilience Principles

+ Climate resilience investments improve the ability of assets and systems to persist, adapt and/or transform in a timely, efficient, and fair manner that reduces risk, avoids maladaptation, unlocks development and creates benefits, including for the public good, against the increasing prevalence and severity of climate-related stresses and shocks. Depending on the intent of the investment, resilience investments can be categorized as:⎯ Asset-focused: to maintain or enhance the resilience of an asset or activity to climate change, specifically to

ensure that the asset or activity’s performance is fit-for-purpose over its design lifespan⎯ System-focused: to deliver climate resilience benefits to the broader system.

EU Technical Expert Group on Sustainable Finance (2020), Taxonomy Report: Technical Annex (2020)

An economic activity shall be considered to contribute substantially to climate change adaptation where that:a) Economic activity includes adaptation solutions that either substantially reduce the risk of adverse impact or

substantially reduces the adverse impact of the current and expected future climate on that economic activity itself without increasing the risk of an adverse impact on other people, nature and assets; or where

b) Economic activity provides adaptation solutions that […] contribute substantially to preventing or reducing the risk of adverse impact or substantially reduces the adverse impact of the current and expected future climate on other people, nature or assets, without increasing the risk of an adverse impact on other people, nature and assets

Economic activities can contribute to adaptation objectives in two different ways:1. Adapted activities: an economic activity is adapted to all material physical climate risks identified for the

economic activity to the extent possible and on a best effort basis; and/or2. Activities enabling adaptation of an economic activity: the activity reduces material physical climate risk in

other economic activities and/or addresses systemic barriers to adaptation and is itself also adapted to physical climate risks.

IPCC (2018) + Adaptation: In human systems, the process of adjustment to actual or expected climate and its effects, in order to moderate harm or exploit beneficial opportunities. In natural systems, the process of adjustment to actual climate and its effects; human intervention may facilitate adjustment to expected climate and its effects

+ Resilience: The capacity of social, economic and environmental systems to cope with a hazardous event or trend or disturbance, responding or reorganizing in ways that maintain their essential function identity and structure while also maintaining the capacity for adaptation, learning and transformation

48

Definition of climate adaptation technologies

Source Definition

Joint-MDB/IDFC (2019) Climate resilience is strengthening a system to withstand climate-related shocks or stressors. […] Climate resilience is the capacity of a system to cope with, or recover from, those effects, while retaining the essential components of the original system.

UNFCCC (2014); UNFCCC (2005), Report on the seminar on the development and transfer of technologies for adaptation to climate change

Adaptation technology can be defined as the application of technology in order to reduce the vulnerability, or enhance the resilience, of a natural or human system to the [impacts] of climate change

IPCC Special Report on Methodological and Technological Issues in Technology Transfer (2000)

Technology: The practical application of knowledge to achieve particular tasks that employs both technical artefacts (hardware, equipment) and (social) information (‘software’, know-how for production and use of artefacts) (IPCC AR4, 2007). Technologies that can be deployed to assist in any of the four steps that comprise the process of adaptation to climate change+ Information development and awareness raising+ Planning and design+ Implementation+ Monitoring and evaluation

Climate Technology Centre & Network

Any equipment, techniques, practical knowledge and skills needed for adapting to climate change+ Hardware, software and ‘orgware’+ Traditional, modern, high tech

49

Definition of climate services

1 Note: The Global Framework for Climate Services (GFCS) is a UN-led initiative spearheaded by WMO that was established in 2009 to guide the development and application of science-based climate information and services in support of decision-making in climate sensitive sectors. Thirteen heads of state or government, 81 ministers and 2500 scientists unanimously agreed to develop the GFCS. Source: GFCS website.

Source Definition

European Commission (2015)

Climate services refers to the transformation of climate-related data – together with other relevant information –into customized products such as projections, trends, economic analysis, counselling on best practices, development and evaluation of solutions and any other service in relation to climate that may be of use for the society at large

European Research Area for Climate Services

We consider Climate Services as the user-driven development, translation and transfer of climate knowledge to researchers and decisionmakers in policy and business. This includes knowledge for understanding the climate, climate change and its impacts, as well as guidance in the use of climate knowledge.

Global Framework for Climate Services1

(WMO)

Climate services provide climate information to help individuals and organizations make climate smart decisions. Climate services equip decision makers in climate-sensitive sectors with better information to help society adapt to climate variability and change.

IPCC (2018) Climate services refers to information and products that enhance users’ knowledge and understanding about the impacts of climate change and/or climate variability so as to aid decision-making of individuals and organizations and enable preparedness and early climate change action. Products can include climate data products

Market Research for a Climate Services Observatory (MARCO) (2018)

Acknowledging the difficulties associated to defining what constitutes a “Climate Service”, MARCO project’s taxonomy includes transactions listed as “Climate Services” by those providing the service.MARCO project highlights the core competencies of climate services i.e., “[…] Information regarding climate allows the user to prepare for the weather they are likely to experience as a result. These services include data from national and international databases on rainfall, temperature, wind, soil moisture and ocean conditions on the simplistic side, to more complicated maps, risk and vulnerability analyses, assessments and long-term forecasts”.

World Meteorological Organization (based on Hellmuth M.E. et al., 2011).

A climate service is a decision aide derived from climate information that assists individuals and organizations in society to make improved ex-ante decision-making. A climate service requires appropriate and iterative engagement to produce a timely advisory that end-users can comprehend and which can aid their decision-making and enable early action and preparedness. Climate services need to be provided to users in a seamless manner and, most of all, need to respond to user requirements.

50

Source Guiding principles and screening criteria

EU Technical Expert Group on Sustainable Finance (2020), Taxonomy Report: Technical Annex (2020)

Guiding principles for substantial contributions to climate change adaptation: 1. The economic activity reduces all material physical climate risks to the extent possible and on a best effort

basis.2. The economic activity does not adversely affect adaptation efforts by others.3. The economic activity has adaptation-related outcomes that can be defined and measured using adequate

indicators.Screening criteria for ‘adapted activities’A1. Reducing material physical climate risks - The economic activity must reduce all material physical climate risks to that activity to the extent possible and on a best effort basis.A2. Supporting system adaptation - The economic activity and its adaptation measures do not adversely affect the adaptation efforts of other people, nature and assets. A3. Monitoring adaptation results - The reduction of physical climate risks can be measured.

Screening criteria for an activity enabling adaptation:The economic activity reduces material physical climate risk in other economic activities and/or addresses systemic barriers to adaptation. Activities enabling adaptation include, but are not limited to, activities that: a) Promote a technology, product, practice, governance process or innovative uses of existing technologies,

products or practices (including those related to natural infrastructure); or, b) Remove information, financial, technological and capacity barriers to adaptation by others.

The economic activity reduces or facilitates adaptation to physical climate risks beyond the boundaries of the activity itself. The activity will need to demonstrate how it supports adaptation of others through+ An assessment of the risks resulting from both current weather variability and future climate change, including

uncertainty, that the economic activity will contribute to address based on robust climate data;+ An assessment of the effectiveness of the contribution of the economic activity to reducing those risks, taking

into account the scale of exposure and the vulnerability to them[In the case of infrastructure linked to an activity enabling adaptation, that infrastructure must also meet the screening criteria A1, A2 and A3 of the screening criteria for ‘adapted activities’]

Principles and screening criteria to determine eligibility (1/3)

Note: For further details on the screening criteria, please refer to the EU Technical Expert Group on Sustainable Finance (2020), Taxonomy Report: Technical Annex. 51

Principles and screening criteria to determine eligibility (3/3)

Source Screening Principles

Climate Bonds Initiative (2019)Climate Resilience Principles

1. Framing Principle: Understanding the context by clearly defining boundaries and interdependencies with the systems of which it is a part

+ Assets and activities being invested in must have clearly defined boundaries and identify interdependencies for assessing climate risks and resilience impacts

2. Design Principle: asset or activity being invested in does substantially mitigate climate risks to the asset or activity itself and/or the system it is part of.

+ Addressing physical climate risks ⎯ Physical climate risk assessment ⎯ Physical climate risk reduction measures for the identified climate resilience risks

+ Addressing resilience benefits ⎯ Resilience benefit assessment ⎯ Climate mitigation trade-off assessment

3. On-going management principle: on-going monitoring & evaluation to ensure resilience actions remain in step with evolving climate hazards, exposure and vulnerability, and changing opportunities and needs for resilience benefits

Note: For further details on CBI’s Principles, please refer to CBI’s Climate Bonds Initiative (2019) Climate Resilience Principles. Sector-specificClimate Resilience Criteria in line with these Principles will be developed. 52

53

ANNEX B.Classification approaches

Adaptation SME Accelerator Project

Overview of classification approaches adopted by existing taxonomies, frameworks, and methodologies

54

Initiative Objective Segmentation

Nationally Determined Contributions (NDCs)

Guide climate actions towards areas with the potential of delivering the greatest impact

Policy-driven sectoral segmentation to steer adaptation action in priority areas

UNFCCC Climate Technology Centre & Network (CTCN, 2017)

Enhance the development and transfer of technologies to developing countries Policy-driven to help identify solutions to climate-related hazards

Global Framework for Climate Services (GFCS | WMO)

Improve the quality and quantity of Climate Services worldwide, particularly in developing countries

Policy- and business-driven high-level segmentation by priority areas

European Market for Climate Services (EU-MACS, 2017)

Analyze the commercial and non-commercial Climate Services market

Policy- and business-driven segmentation based on both commercial and non providers of climate services

Climate Knowledge Hub Map and profile climate service providers

Policy and business-driven segmentation aimed at helping users to identify the Climate Service provider(s) that best meet their needs

Market Research for a Climate Services Observatory (MARCO, 2018)

Analyze the commercial Climate Services market

Business-driven segmentation of Climate Services based on typology (type of data platform & service) and based on those sectors/industries in which they are used

EU Taxonomy for sustainable activities (2020)

Drive capital towards economic activities substantially contributing to adaptation, while avoiding significant harm to the other environmental objectives

NACE for industry classification1 and an indicative framework for classification of climate-related hazards to guide users to consider the most salient physical risks when mapping the sensitivities of a given sector (see next slide). Recognizing that climate change will affect all sectors of an economy and all sectors must adapt to its impacts globally, the EU Taxonomy provides additional guidance for those sectors that (i) are among the most vulnerable to the negative effects of climate change in Europe; (ii) represent a large share of GVA and employment, allow for testing of the adaptation taxonomy approach in natural resource-based sectors, service sectors and asset-based sectors.

Task Force on Climate-Related Financial Disclosures (TCFD, 2017)

Enhance climate-related financial disclosures to enable the integration of climate risks and opportunities in decision-making

Business-oriented focus on those sectors with the highest likelihood of climate-related financial impacts

Climate Bonds Initiative (2019)Climate Resilience Principles

Determine when the intended use of proceeds may be deemed to contribute to reducing physical climate risk and improving climate resilience

None(The principles provide a framework within which developing sector-specific climate resilience criteria)

A policy-driven sectoral classificationNDCs priorities

Source: UNFCCC (2016), Aggregate effect of the intended nationally determined contributions: an update - Synthesis report by the Secretariat. 55

A policy-driven classificationTaxonomy of the UNFCCC Climate Technology Centre & Network

Source: CTCN (2017) | CTCN Taxonomy – Adaptation Sector; CTCN (2016), CTCN: Mandate, services offered,and operative lessons learned.

+ The Climate Technology Centre & Network (CTCN), whose mandate is to “stimulate technology cooperation and enhance the development and transfer of technologies to developing country Parties at their request”, developed a taxonomy of adaptation technologies defined as: “Any equipment, techniques, practical knowledge and skills needed for adapting to climate change

56

Sector Technology Groups Technology ExamplesEarly Warning and Environmental Assessment

§ Remote sensing & GIS § Hazard mapping§ Early warning system§ Monitoring systems

§ Improved weather forecasting & hydrometeorological networks

§ Seasonal to interannual weather forecast§ Disaster risk assessment tools§ Hazard mapping solutions

§ Flood hazard mapping§ Early Warning Systems

Communication§ Flood forecasting systems§ …

Agriculture and Forestry

§ Terrestrial ecosystems management§ Agro-forestry, Silviculture & Mixed

farming§ Seed, grain & food storage

§ Increasing crop resilience and productivity

§ Livestock management§ Land management training

§ Crop storage§ Precision agriculture § Soilless agriculture§ Improved cultivation techniques

§ Aeroponic seed production§ …

Water § Water efficiency and demand management

§ Adaptation planning§ Water augmentation (increasing

capture and storage of surface run-off)§ Hydropower § Water Pollution § Riverine flood protection

§ Urban storm water management

§ Water storage§ Use of alternative water

sources § Integrated planning§ Limiting nutrient leakage § Water allocation

§ Hazard mapping§ seasonal to interannual weather forecast § Disaster risk assessment tools§ Irrigation efficiency and information

systems§ Leakage management in piped systems§ Water efficiency in industry

§ Open source climate data and tools

§ Climate change vulnerability assessment

§ Downscaling of climate model projections

§ Embedding climate variability in hydropower design

§ …Human health § Emergency medical services

§ Advanced IT systems in the health sector

§ Public health services§ Vaccination programs§ Vector-borne disease

§ Disease surveillance systems§ E-Health§ Rapid diagnostic tests

§ Malaria protection and prevention programs

§ …Infrastructure & urban planning

§ Ground surface material§ Sewerage infrastructure§ Land use in human settlements § Building design and material§ Urban design and spatial planning

§ Grid resiliency§ Building construction§ Water supply infrastructure§ Urban planning§ Building codes § Resilient transport systems

§ Engineered cementitious composite (ECC)

§ Urban infrastructure development§ Warm-mix asphalt§ Resilient railway systems

§ Resilient road systems§ Urban infrastructure

development§ Elevated buildings

Coastal zones § Retreat§ Accommodation§ Integrated coastal zone management

§ Protection (hard & soft engineering)

§ Flood warning systems§ Coastal setbacks§ Managed realignment§ Flood and cyclone shelters

§ Floating houses§ Management of seagrass beds § …

Marine and fisheries

§ Active motion-dampening systems for marine port

§ Seaweed farming§ Marine protected areas

§ Fisheries management§ Artificial reefs§ Aquaculture management

§ Active motion-dampening systems for marine ports

§ Seaweed farming§ Marine protected areas

§ Fisheries management § Artificial reefs§ Aquaculture management§ …

A scientific/policy-driven classificationKey economic sectors analyzed by IPCC WG II AR5

Source: IPCC (2014): Climate Change 2014: Impacts, Adaptation, and Vulnerability. Part A: Global and Sectoral Aspects. Contribution of Working Group II to AR5.

Sectors

Energy+ Demand+ Supply+ Transport and Transmission of Energy

Other Primary and Secondary Economic Activities+ Crop and Animal Production+ Forestry and Logging+ Fisheries and Aquaculture+ Mining and Quarrying+ Manufacturing+ Construction and Housing

Water Services + Water Infrastructure+ Municipal and Industrial Water Supply+ Wastewater + Irrigation+ Nature Conservation+ Water Management and Allocation

Transport+ Roads+ Rail+ Pipeline + Shipping+ Air

Recreation and Tourism

Insurance and Financial Services

Health

57

Regional map of representative key climate-related risks by IPCC AR5

Source: IPCC (2014): Climate Change 2014: Synthesis Report. Contribution of Working Groups I, II and III to the Fifth Assessment Report of theIntergovernmental Panel on Climate Change - IPCC, Geneva, Switzerland - (Figure 2.4).

58

A policy- and business-driven classification Climate Services priority areas | Global Framework for Climate Services

Sector Rationale

Agriculture & Food Security

In an era of rapid population growth, food security remains a major concern. Agriculture is vulnerable not only to market fluctuations but also to climate variability and climate change and natural hazards. Climate services can improve delivery and provides a set of actions that will improve, uptake and use climate services in this sector

Disaster Risk Reduction Most natural hazards are caused by weather and climate. User-friendly climate services can help countries and communities build greater resilience against floods, droughts, storms and other hydrometeorological hazards.

Energy Energy generation and planning of operations are markedly affected by meteorological events and energy systems are increasingly exposed to the vagaries of weather and climate affecting both the availability and energy demand.

Health

Climate variability and climate change have important repercussions on public health. Temperature and rainfall conditions influence the spread of communicable diseases while extreme weather events cause injury and death. Demand-driven climate services can empower the health community to save lives.

Water The amount and availability of water is strongly influenced by climate variability and change. Seasonal climate outlooks and other climate services and products can greatly improve water supply management

Source: Global Framework for Climate Services website. 59

Source: EU-MACS (2017), Review and analysis of Climate Service Market Conditions.

A policy- and business-driven classification A market classification of Climate Services | EU-MACS

+ Agriculture, water and energy are the sectors primarily addressed by the commercial and non-commercial Climate Service providers participating to the EU-MACS survey

+ Energy is the sector mostly targeted by private providers of Climate Services

60

Sectors

Agriculture Catastrophe management / DRR

Water Health care incl. pharmaceuticals

Forestry Waste management

Energy Biodiversity and nature conservation

(Critical) Infrastructures (incl. energy and water supply;excl. roads, rails and waterways)

Education and training

Transport and logistics Spatial / urban planning

Tourism Industry and trade

Building and construction Ecosystems management

Finance and (re-) insurance Mining / extraction

Climate Services Typologies

Advisory services, risk assessment and decision support tools

Operations (collection and provision of raw data)

Data management, incl. calibrated data sets, data archiving, data certification

Processed data, incl. re-analysis

Measurements, incl. instruments and technologies for measurements and calibration

Publications, e.g., synthesis and assessments, guidance documents, manuals

Modelling, incl. climate, impacts and socio-economics

A policy- and business-driven classificationA user-driven profiling of Climate Service providers | Climate Knowledge Hub

Sector targeted

Agriculture (Critical) Infrastructures

Water Industry and trade

Forestry Spatial / urban planning

Tourism Finance and insurance

Energy Nutrition

Building and construction Waste management

Health Social structures / governance

Biodiversity Education

Ecosystems (incl. soil) Other

Transport

Source: Adapted from Climate Knowledge Hub (i.e., not displaying the following categories as deemed covered by the “institution Type” section of the Hub profiling “researchers, consultancies, small businesses, practitioner e.g., architects; public decision makers/politicians, corporations”). The Climate Knowledge Hub mapping is part of a European project aimed at establishing an EU Research Area for Climate Services covering 18 countries.

Key competencies

Fundamental research

Applied research / technology

Consulting

Education / Capacity Building

Thematic focus

Climate System Disaster Risk Reduction

Impacts of climate change Geo-engineering

Vulnerability to climate change Transition to low-carbon economy

Adaptation to climate change Societal transformation to sustainability

Climate mitigation Biodiversity Conservation

61

A business-driven classification Sectors demanding commercial Climate Services | MARCO

Source: MARCO (2018), Final definition, Taxonomy and Report, EU-MACS (2017), Review and analysis of Climate Service Market Conditions based on Poessinouw (2016).

Sectors

Agriculture Manufacturing

Biotech News Publishing & Journalism

Built Environment Operational Services

Business Services Pharmaceuticals

Communications Public & Charitable Bodies

Defense Renewable Energy

Education & Training Research & Development

Exploration Retailing & Wholesale

Food & Drink (from post-agricultural to retail sales) Tourism & Leisure

Forestry & timber (incl. processing)Utilities (incl. distribution and recycling of water)

Health Care (incl. hospitals)Processing Industry Not Elsewhere Classified

Hospitality (incl. hotels and restaurants)

Civil Engineering Sector Not Elsewhere Classified

Legal & Financial Other Industries not Elsewhere Classified

Logistics (incl. air, land and sea travel of people and goods)

+ MARCO project identified a wide variety of sectors as users of Weather and Climate Services

62

A business-driven classificationUses of commercial weather & climate services within various sectors | MARCO

Source: MARCO (2018) based on a subjective assessment of uses retrieved via purchasing sources of data. Note: findings refer to 2017/18, the period investigated by MARCO.

Sectors

Corporate governance Futures Market Data

Insurance purposes Humanitarian Relief planning

Corporate Planning Long Term Exploration Planning

Estates Locational Planning Installation Redundancy Planning

Content for Information-Giving Services Regulatory Services (Land Cover)

Forward Crop Planning Forensic Services

Investment Planning Border Management & Planning

Infrastructure Planning Long-Term Operations Planning

Service Provision Planning Long Range Product Planning

Major Capital Project Planning Educational

Irrigation & Drainage Planning Resource Planning

Research Programs Environmental Planning

Disaster Recovery Planning

Health & Safety Services

+ MARCO project identified that:

+ Corporate Governance (accountability), Insurance, Corporate Planning and Investment Planning were the most frequent usages of Weather and Climate Services

+ Forward crop planning, exploration planning (incl. water and civil engineering), broader management (legal, defense, public services and general consultancy) were the most specific uses

63

Source: The table above presents the classification provided by MARCO (2018), Final definition, Taxonomy and Report. (The same terminology is also applied in EU-MACS). MARCO project’s categorization of climate services refers to both Weather and Climate Services. From a user perspective, Weather Services and Climate Services are two points on a single continuum and both are typically required. The difference between two relates to the duration of time the service relates to i.e., short-term vs. longer-term. EU-MACs noted there are further categories of climate services that are not reflected in the terminology outlined in the table above e.g., capacity building and training.

Service type Description

Measurement Instruments and technologies for measurement and calibration for global weather, climate and climate change applications.

Operation Collection and provision of raw data for global weather, climate and climate change applications.

Modelling Modelling of data, both certified and non-certified for global weather, climate and climate change.

Data Management Provision of calibrated data sets, data archiving, data certification and data sales for global weather, climate and climate change applications.

Processing & Re-Analysis

Provision of data analysis and retrieval services including data mining tools, for global weather, climate and climate change.

Advisory Services Advisory, risk assessment and decision support tools e.g. risk assessment for the long-term location of a hydropower plant.

Other consulting General consulting services include consulting services about corporate responses to climate change e.g., mapping corporate’s and their supply chain’s exposure to physical climate risks.

Publications General publication of analysis findings for global weather, climate and climate change i.e., the assembly of publications on climate forecasts based on data and analysis for both private and public sector organizations.

A business-driven classificationType of service provided by Weather and Climate Services | MARCO

64

Classification of climate-related hazards | EU Taxonomy

Source: EU Technical Expert Group on Sustainable Finance (2020), Taxonomy Report: Technical Annex (page 28, Table 5).

+ The Technical Expert Group (TEG) developed a classification of climate-related hazards to guide the user to consider the most salient physical risks when mapping the sensitivities of a given sector. It did not include all secondary hazards resulting from climate-related hazards. It however advised to assess the risk of such secondary hazards and consider measures to address them for each economic activity

65

Classification of climate-related hazardsExample of sectoral climate sensitivity matrix | EU Taxonomy

Source: EU Technical Expert Group on Sustainable Finance (2020), Taxonomy Report: Technical Annex (page 28, Table 5).

+ Agriculture and Forestry

66

A business-oriented classification Sectors with the highest likelihood of climate-related financial impacts | TCFD

Source: TCFD (2017), Recommendations of the Task Force on Climate-related Financial Disclosures | Final Report.Note: As stated in TCFD (2017), these four groups and their associated industries are intended to be indicative of the economic activities associated with these industries rather than definitive industry categories.

Sector

Agriculture, Food, & Forest Products- Beverages- Agriculture- Packaged Foods and Meats - Paper and Forest Products

Energy- Oil and Gas- Coal- Electric Utilities

Materials and Buildings- Metals and Mining- Chemicals- Construction Materials- Capital Goods- Real Estate Management

and Development

Transportation- Air Freight - Passenger Air

Transportation- Maritime Transportation- Rail Transportation - Trucking Services- Automobiles and

Components

+ The TCFD determined this classification based on three factors most likely to be affected by both transition and physical climate risks: GHG emissions, energy usage, and water usage.

+ The TCFD validated its approach through:+ Consultations soliciting more than 200 responses

which resulted in the ranking of Energy, Utilities, Materials, Industrials and Consumer Staples / Discretionary as the Global Industry Classification Standard (GICS) sectors most important for disclosure guidelines to cover

+ Review of sector-specific disclosure guidance documents (CDP, GRESB, etc.)

+ Review of IPCC WG II AR5 on key economic sectors

+ Review of grey literature providing information on which industries have the highest exposures to climate change e.g., IEA, Moody’s, S&P Global Ratings, WRI/UNEPFI

67

A business-driven classification Sensitivity to climate-related hazards by industry

Note: The sensitivity matrix is indicative only. It is not to be used as a substitute for a materiality assessment for any individual corporation. Source: EBRD and GGCA (2018), Advancing TCFD guidance on physical climate risks and opportunities.

Financials

+ The matrix summarizes sensitivities to physical climate hazards by industry group

68

A policy and business-driven classification of finance end-uses MDBs adaptation finance by sector grouping

Sector used in MDBs reporting

Cross-cutting issuesEnergy, transport and other built environmentand infrastructureWater and wastewater systemsCrop and food productionOther agricultural and ecological resourceInstitutional capacity support or technical assistanceCoastal and riverine infrastructureIndustry, manufacturing and tradeFinancial services

Sources: Joint-MDBs (2019), Joint Report on Multilateral Development Banks’ Climate Finance; Buchner B. et al (2019), Global Landscape of Climate Finance 2019.

Climate Policy Initiative’s Global Landscape of Climate Finance segments public adaptation financing in similar sectorsSectors used by CPI’s Landscape of Climate Finance

Water and wastewater management Disaster risk management

Agriculture, forestry, land-use, and natural resource management Cross-sectoral

Infrastructure, energy, and other built environment Policy and national budget support & capacity building

Coastal protection Industry, extractive industries, manufacturing and trade

69